Cryptocurrencies on February 28, 2018: outlook


*I don’t trade cryptocurrencies. The best strategy for trading a crypto bubble is a classic trend following strategy.
Here’s my outlook for various cryptocurrencies based on the aforementioned strategy.

Discretionary outlook based on charts

  1. Bitcoin Cash is more bearish than other major cryptocurrencies.
  2. Bitcoin is once again at its resistance trendline
  3. Ethereum is swinging in a narrower and narrower range. It will have to breakout or breakdown soon.

12:38 pm. Bitcoin Cash is more bearish than other major cryptocurrencies
Bitcoin cash has turned prior support resistance. It is much weaker than Bitcoin and Ethereum.

12:24 pm. Bitcoin is once again at its resistance trendline
Bitcoin is trying to make a bullish inverse head-and-shoulders pattern. Whether this pattern works out in the end is yet to be seen. That’s because Bitcoin is once again stuck at its resistance trendline.

Bitcoin breaking above this resistance trendline will be the first sign that Bitcoin’s bear market is over. The second sign will be if Bitcoin makes a higher high (i.e. above $12,750). Right now, neither bulls nor bears have an advantage here.
12:23 pm. Ethereum is stuck in a narrower and narrower range. It will have to breakout or breakdown soon.
Ethereum is still finding support on its rising trendline. However, Ethereum is still capped by a pattern of “lower highs”. Neither bulls nor bears have an advantage here. The odds of a breakout vs breakdown are 50-50.

Read more about cryptocurrencies on February 26, 2018.

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